Marxist-Leninist Stages of Development

Marxist-Leninist Stages of Development  Feudalism  Mercantilism  Capitalism  Socialism  Communism  Socialist democracy

Vladimir Illich Lenin (until - 1924) Imperialism-- the highest stage of capitalism. - monopoly capitalism - exploited working class - rivalry for markets - conflict among capitalist states - domination of peripheral nations

War communism

Planning Mechanisms

Joseph Vissarionovich Stalin 1924 -1953  Continues NEP  Administrative Command Economy  5 Year Plans  Full Nationalization of Industry and Agriculture  Collectivization  Comecon (reconstruction, quotas)

From World Revolution to Communism in One Country. Under Stalin: Nationalism and Mass Patriotism Semi-Autonomous National Regions Russianization (language) Russification (identity)

CENTRAL PLANNING  State ownership of enterprises.  Workers were state employees.  Planned production targets and supply of inputs.  Managers were administrators of state property and enforcers of the output plans.  Planning Takes Place in Phases (5 Year Plans)

Vasily Leontief created INPUT-OUTPUT CHART What kept the system in place during the Stalin period (1927-1953) ?  Managers: fear of loosing life or being sent to a labor camp as an “enemy of the state”.  Workers: under-performer was the enemy of the state. Unemployment was illegal (hooligan laws).  Enemies of the state ( est. 12-16 million) worked in the labor camps, mines, populated Siberia and about 4,000 labor camps. E.g., The plant GAZ which produced cars in Nizhnii Novgorod, the Ford license made trucks and cars. The plant museum has photos of the first plant managers (from 1930). None of the managers left the position without prosecution and most of them received the death sentence for treason. Many GAZ American workers shared their fate.

One of the solutions...COMECON 1949  COMECON countries “assigned” quotas of production and resources -- compensation for the Soviet war effort and the military costs of the Cold War.

CENTRALLY PLANNED ECONOMIES (CPE) Pressure Economy-forced accumulation Central Control-Political Planning Extensive Development and rapid industrialization Closed Economy-Insulated

Successes of Central Planning Industrialization Education Infrastructure Technological Development

Market Economies and CPEs American-European model:  Intensive growth: growth results from increased productivity per worker.  ‘Americanism’  ‘FORDISM’  The Virtuous Circle and the Golden Age.  Consumer society.

Soviet model:  Extensive growth: growth results from increased employment and new plants.